The Los Angeles-Long Beach port complex is delaying a plan to fine shipping companies that allow their cargo containers to stack up amid international supply chain issues.
The fines were set to begin on Monday as an incentive to help alleviate the shipping backlog, the Southern California News Group reported.
Now the fines won’t be charged to the companies until at least Nov. 22, the ports said in a joint statement.
The Biden administration has allowed the port to operate 24 hours a day so goods can be unloaded and shipped out to consumers ahead of the upcoming Black Friday and Christmas holiday season, according to The Associated Press.
“We’re encouraged by the progress our supply chain partners have made in helping our terminals shed long-dwelling import containers,” Port of Long Beach Executive Director Mario Cordero said in a statement.
“Clearly, everyone is working together to speed the movement of cargo and reduce the backlog of ships off the cost as quickly as possible.”
The latest delay is due to early compliance from companies in clearing the cargo since the penalties were approved last month, according to the Southern California News Group.
“I’m grateful to the many nodes of the supply chain, from shipping lines, marine terminals, trucks and cargo owners, for their increased collaborative efforts,” Port of Los Angeles Executive Director Gene Seroka said in a statement.
Since the initial announcement, the twin ports have seen a 26 percent decrease in old cargo on their docks, they said.